FSA considering an increase in fines
The FSA (Financial Services Authority) has published a review of the level of fines available in its quest to control and regulate the UK financial services industry. There is a suggestion that we could see a trebling in the size of fines from 6 March with future fines likely to be more directly related to the income received by a company and the revenue created by the division directly involved in the enforcement issue.
There is no doubt that the FSA has become more proactive over the last few months and this policy of issuing more penalties and public disclosure seems to be paying dividends. While many may argue against a potential trebling of fines the truth of the matter is that those who abide by the rules and regulations will have nothing to fear. The potential size of any future fine may also ensure companies check their records and their procedures to ensure they abide by the regulations to the letter.
The UK regulatory bodies have received more than their fair share of criticism over the last few months regarding the UK recession and the financial meltdown we saw in 2008/09. It will be interesting to see the response from the financial markets where many participants have incurred the wrath on the FSA during these difficult economic times.
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